Whistleblowing
Definition
The reporting of suspected wrongdoing, misconduct, or regulatory breaches by employees or other insiders through internal or external channels. Financial services regulations require firms to establish internal whistleblowing procedures, protect whistleblowers from retaliation, and ensure reports are properly investigated and escalated.
Regulatory Context
The FCA and PRA require firms to appoint a Senior Manager as a whistleblowing champion. In the US, the SEC and CFTC operate whistleblower programmes with financial incentives, paying awards of 10-30% of sanctions exceeding $1 million. The EU Whistleblower Directive provides minimum protection standards.